In this video, I'll discuss some of the benefits of investing in real estate now.
We are in one of those unique phases of real estate called price discovery, where many seasoned investors are actually on the sidelines waiting for Cap rates and market prices to settle in to the new norm. Most simply don't want to be in a position where they are buying in a falling market.
Next, the locked-up debt market is resulting in higher rates and higher equity contributions that make for deals that simply don't pencil.
Additionally, many commercial properties purchased in the last 5 years were financed with Bridge loans that will be coming due. For many, there will be properties that are financially strong, cashflows exceeding projections, and healthy reserves that unfortunately happen to have debt that is coming due in a market that isn't conducive to either a refinance or sale.
Huge benefits await niche or hyper-local players with strong broker and community banking relationships ready to step in and pick up great assets at undisclosed prices. A lot of these transactions will be handled quietly behind the scenes and they will happen very quickly. Remember, the vast majority of real estate wealth is made in corrections, but you have to be in the game to win.
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